Daly says there's 'no urgency' for the Fed to cut U.S. interest rates

By Jeffry Bartash

Daly stills sees 'path' to reduce borrowing costs in 2024

The chief of the San Francisco Federal Reserve said there "is really no urgency" to cut U.S. interest rates in light of how long it's taking for inflatio to ebb.

"Inflation is coming down, but it's slow. Bumpy and slow," Mary Daly said in an an event in Las Vegas

There is really no urgency to adjust the rate," she added. "Standing pat is the right policy at the moment."

Daly is a member this year of the 12-member Fed board that sets helps determine the level of U.S. interest rates.

The Fed has signaled it plans to cut interest rates three times this year, but senior members are divided over when to begin. For now Wall Street is expecting the first reduction in mid-June.

Daly herself said there's still a "path" to cut interest rates this year, "but we're just not there yet."

Inflation has risen in the first few months of 2024 and the economy has remained remarkably resilient, raising questions about whether the increase in prices will slow enough to hasten Fed rate cuts.

The Fed will see several addition months of data on inflation and employment before the June meeting to help the central bank plot its course.

-Jeffry Bartash

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04-02-24 1350ET

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